A ltd issued 1,000, 5% debentures of ₹100 each redeemable at a premium of 10%. The amount of interest for one year will be:

₹5,000

The correct answer is option 3- ₹5,000.

Total Debentures = 1000
Per value of debenture = 100
Interest = 5%

Total of amount = 1,000 x 100
                       = 1,00,000

Amount of interest = 1,00,000 x 5/100
                            = 5,000